HowTo Start a Trucking Company

Working in the trucking industry requires the safe, timely and secure transportation of freight. Independent and owner-operators can begin working in the trucking industry on several levels and can specialize in different types of business operations. There are opportunities available to potential business owners to operate a single truck or small fleets depending on the investment capital the individual has at their disposal.

Range of Trucking Company Opportunities:

A trucking business can be diversified or it can be very specific according to the service you wish to offer to your customers. Every form of physical trucking company has one thing in common, the transportation of freight; this can be in the form of goods and commodities or passengers. Loads are available for straight trucks, hot shot rigs, tractor trailer units and specialty trailers used for oversized freight to list a few. Regardless of the type of business you start, your company is going to be required to obtain an operating authority; multiple types of authority may be required. You company will also be responsibility for properly inspected, maintained and licensed equipment, adequate insurance and financial responsibility and qualified drivers.

Governing Body:

The trucking industry is regulated by the Federal Motor Carrier Safety Administration, (FMCSA) www.fmcsa.dot.gov and other federal and state agencies are involved in the safe operation of commercial motor vehicles and enforcement of these regulations. Drivers are required to obtain a Commercial Driver's License, (CDL) with appropriate endorsements for the type of equipment they will operate and the freight that will be transported. Drivers will also have to pass a DOT certified physical and drug screening to operate a commercial motor vehicle. FMCSA regulations dictate the weights, classes and operational range of all commercial motor carriers and has very specific rules and requirements for each, consult the agency's website or contact the agency prior to filing an application for an operating authority to insure you company is in compliance and to avoid costly fines.

Initial Requirements:

Before you can haul your first load your company is going to have to be granted an operating authority by FMCSA. New Entrants are now required to file an application package and depending on the type of operation your company will be engaged in, more than one type of authority may be required.

Insurance and Financial Responsibility:

All commercial motor carriers are required to maintain the minimum insurance required by local, state and federal regulations. These insurance requirements include the appropriate liability and cargo insurance. Companies involved in the transportation of hazardous materials and passengers may have additional insurance standards which must be met.

Equipment:

The transportation services your company provides will determine the type of equipment you will need to either purchase or lease. As a minimum, your company will need a truck suitable for transporting the type of freight you plan to move. The truck will have to meet or exceed the guidelines established by the FMCSA, state and local regulations for inspections, registration, insurance and safe operation.

Operating Areas:

Any motor carrier engaged in "for-hire" operations is governed by the FMCSA and the agency mandates where the carrier can operate. Typically common and contract carriers are involved in interstate commerce, which means they provide services across state lines. Intrastate operation by contrast is restricted to the borders of a single state. There are exceptions to these rules pertaining to private carriers and operation in terminal and commercial zones.

Tips: Before you begin any new business you will want to learn everything that you can about that business and develop a written business plan. It's no different in the trucking industry, starting a trucking business can be risky and expensive if you don't take the time to get the facts before you open for business.

Operating a trucking business can be a high risk investment and very expensive. Take the time t research the industry carefully before spending money on equipment, look at specialty areas and find a niche that suits your interests and business goals.

http://www.startatruckingcompany.com/
http://www.fmcsa.dot.gov/registration-licensing/NewEntrant-faq.aspx?